INCOME TAXES (Tables)

12 Months Ended

Dec. 31, 2017

Income Tax Disclosure [Abstract]

Schedule of Components of Income Taxes

The provision for income taxes is comprised of the following components:

	Years Ended December 31
	2017		2016			2015
	(Dollars in thousands)
Current expense
Federal	$	28,852	$	26,549		$	11,946
State	9,278		8,883			5,052
Total current expense	38,130		35,432			16,998
Deferred expense (benefit)
Federal	7,953		153			8,466
State	1,258		(158		)	1,754
Total deferred expense (benefit)	9,211		(5		)	10,220
Total expense	$	47,341	$	35,427		$	27,218

Schedule of Income Tax Rate Reconciliation

The difference between the statutory federal income tax rate of 35% and the effective income tax rate reported for the last three years is detailed below:

	Years Ended December 31
	2017					2016					2015
	(Dollars in thousands)
Computed statutory federal income tax provision	$	47,091		35.00	%	$	39,226		35.00	%	$	32,262		35.00	%
State taxes, net of federal tax benefit	6,817			5.07	%	5,643			5.03	%	4,500			4.88	%
Revaluation of net deferred tax assets	1,895			1.41	%	—			—	%	—			—	%
Merger and other related costs (non-deductible)	213			0.16	%	210			0.19	%	185			0.20	%
Change in valuation allowance	31			0.02	%	28			0.02	%	41			0.04	%
New Markets Tax Credits	(3,960		)	(2.94	)%	(6,360		)	(5.67	)%	(6,514		)	(7.07	)%
Increase in cash surrender value of life insurance	(1,445		)	(1.07	)%	(1,431		)	(1.28	)%	(1,292		)	(1.40	)%
Stock-based compensation	(1,258		)	(0.94	)%	—			—	%	—			—	%
Low Income Housing Project Investments	(1,253		)	(0.93	)%	(1,641		)	(1.46	)%	(1,182		)	(1.28	)%
Nontaxable interest, net	(987		)	(0.73	)%	(996		)	(0.89	)%	(973		)	(1.06	)%
Other, net	197			0.15	%	748			0.67	%	191			0.22	%
Total expense	$	47,341		35.20	%	$	35,427		31.61	%	$	27,218		29.53	%

Schedule of Net Deferred Tax Asset

The tax-effected components of the net deferred tax asset at December 31 were as follows:

	2017			2016
	(Dollars in thousands)
Deferred tax assets
Accrued expenses not deducted for tax purposes	$	9,268		$	15,401
Allowance for loan losses	16,702			24,681
Deferred gain on sale leaseback transaction	909			1,744
Employee and director equity compensation	1,559			2,095
Federal Home Loan Bank borrowings fair value adjustment	26			82
Loan basis difference fair value adjustment	3,070			4,336
Net operating loss carry-forward	127			69
Net unrealized loss on securities available for sale	106			—
Other	527			1,015
Gross deferred tax assets	32,294			49,423
Valuation allowance	(121		)	(69		)
Total deferred tax assets net of valuation allowance	$	32,173		$	49,354
Deferred tax liabilities
Core deposit and other intangibles	$	2,057		$	3,040
Deferred loan fees, net	4,275			5,407
Fixed assets	5,270			6,168
Goodwill	10,265			14,737
Net unrealized gain on securities available for sale	—			105
Derivatives fair value adjustment	524			454
Other	4,307			3,909
Gross deferred tax liabilities	$	26,698		$	33,820
Total net deferred tax asset	$	5,475		$	15,534

Reconciliation of Unrecognized Tax Benefits

The Company accounts for uncertainties in income taxes by providing a tax reserve for certain positions. The following is a reconciliation of the beginning and ending amount of unrecognized tax benefits:

	(Dollars in thousands)
Balance at December 31, 2015	$	81
Reduction of tax positions for prior years	—
Increase for prior year tax position	—
Increase for current year tax positions	30
Balance at December 31, 2016	$	111
Reduction of tax positions for prior years	—
Increase for prior year tax positions	—
Increase for current year tax positions	31
Balance at December 31, 2017	$	142